(The Center Square) — Southern University’s Athletic Department ended the fiscal year with a deficit of nearly $1.75 million, according to a recent audit by the Louisiana Legislative Auditor’s office.
The audit also uncovered financial misreporting and misclassification of funds within the department.
The report highlighted that Pell Grants for nine students, totaling $61,319, were not reported in the NCAA Membership Financial Reporting System, raising concerns about compliance with NCAA financial regulations. Additionally, auditors found that $32,838 in team travel expenses had been misclassified.
The audit also found the university failed to adhere to its cash-handling policies and procedures for at least one football game, further complicating its financial oversight.
Southern University reported total revenues of $16.3 million for the year, with ticket sales generating $2.28 million and student fees contributing $3.39 million. Indirect institutional support accounted for $2.7 million. However, total expenses reached $18.06 million, outpacing revenues and contributing to the financial shortfall.
The largest expenses included $3.37 million for athletic student aid, $3.4 million in coaching salaries, benefits, and bonuses paid by the university and related entities, and $2.03 million allocated to support staff and administrative compensation. Team travel costs alone amounted to nearly $1.9 million.
Southern University is not alone in grappling with financial struggles. Several recent audits Louisiana universities struggling to keep their athletic departments in the black.
The University of New Orleans’ Athletic Department operated with a $4.62 million deficit for fiscal year 2024. The institution, which competes in the Southland Conference, reported $8.8 million in expenses compared to $4.2 million in revenue, relying heavily on student fees and institutional support.
Other Louisiana universities, including LSU, Louisiana Tech, and Northwestern State, have also reported substantial financial shortfalls in their athletic programs. Louisiana Tech recorded the state’s largest athletic deficit at $10.5 million, while LSU reported nearly $1 million in losses.
Combined, deficits across public universities in Louisiana have exceeded $21.7 million.
